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What protocols will benefit from the upcoming Ethereum Shanghai upgrade?

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The upcoming Ethereum upgrade will have a huge impact on liquidity pledge protocols.

What protocols will benefit from the upcoming Ethereum Shanghai upgrade?

Original article by The DeFi Investor

Deep Tide TechFlow

A new narrative has emerged in DeFi. The upcoming Ethereum upgrade will have a huge impact on liquidity pledge protocols. Here's why I think liquidity pledge is a growing trend, and the opportunities to invest in this outlet.

First, what's interesting about Ethereum's Shanghai upgrade? (coming in March)

Once the upgrade is complete, the pledge withdrawal of $ETH will be activated. Many people are sceptical about putting in $ETH as withdrawals are currently not available.

This is why only 14% of ETH supply is pledged. In contrast, most L1s have a pledge ratio of more than 40 percent.

Here's where things get interesting: if more people are going to pledge ETH after the Shanghai upgrade (which is very likely), most people are going to opt for liquid pledge derivatives.

有哪些协议将会从即将到来的以太坊上海升级中受益？

Because liquid pledge derivatives can be used throughout the DeFi without giving up the pledge gain. After the $ETH pledged can be withdrawn, the revenue of liquidity pledge providers may take off.

Income is rising. Their tokens will also benefit.

因此，这里有几个预计将从上海升级中受益的 Token ：

$LDO

Lido is the largest $ETH liquidity pledge provider. It charges a 10 percent fee for the pledge award. A portion of this fee is sent to the DAO Treasury.

Advantages:

Lido is the market leader in this segment.

It is the fifth most underrated deal, based on price-to-fee ratios.

82% 的 $LDO 供应量在流通中（而且 Token 通货膨胀很小）。

Disadvantages:

No revenue sharing with LDO holders.

有哪些协议将会从即将到来的以太坊上海升级中受益？

$RPL

Second largest liquidity pledge agreement.

Advantages:

Rocket Pool prioritizes decentralization (anyone can run a node).

$RPL has a low inflation rate (5%).

Rocket Pool A pledge of $ETH can result in a higher reward.

Disadvantages:

No revenue sharing with $RPL holders.

$SWISE

Another liquidity pledge agreement.

Advantages:

Stakewise V3 is available quickly.

Anyone can pledge $SWISE to receive a percentage of the agreed revenue.

Anyone can join as a node operator (more decentralized).

Disadvantages:

Not popular enough for mainstream users.

The inflation rate of $SWISE is high.

有哪些协议将会从即将到来的以太坊上海升级中受益？

$FXS

An agreement to build the DeFi product ecosystem around $FRAX and $FPI. $frxETH (FRAX's $ETH liquid Pledge derivative) was launched a few months ago and has since experienced tremendous growth.

Advantages:

有哪些协议将会从即将到来的以太坊上海升级中受益？

The TVL of $frxETH is growing very fast.

Curve offers $frxETH with very attractive yields.

8% of $ETH pledge proceeds are shared with $veFXS holders.

Disadvantages:

$frxETH is relatively new and less popular than other liquid collateral derivatives.

The current inflation rate of $FXS is 24%.

有哪些协议将会从即将到来的以太坊上海升级中受益？

It is too early to predict which of these agreements will benefit most from the Shanghai upgrade. But if the Shanghai upgrade is not delayed, a new narrative is likely to emerge around liquidity pledges.